By George Liu:2011 was a year of turmoil for worldwide financial markets, with the near unraveling of the eurozone and the euro, continued signs of economic stagnation in the United States, and the wiping out of $6.3 trillion in global stock market capitalization, according to the Financial Times.
By MyPlanIQ:Investors is flocking to fixed income bond ETFs and mutual funds in the current market calamity. Long term treasuries (TLT, TLH) rose most (TLT rose 8% in the last four days), representing safe havens even after the debt ceiling fiasco. The following shows the current fixed income ETF trend ranking, as 8/3/2011.
On February 14th — one month ago — we pondered “Long Bonds and Yen: Big Shorts for 2012?”
Japan’s currency (which we short circa Feb 14) has been in freefall the past four weeks, from 77 to 83 yen to the dollar. (As the yen declines in value, USDJPY rises.)
And now, this week, we may be seeing the long bond breakdown:
Michael Johnston submits:With lingering uncertainty over the outlook for the global economy, safe havens have generated a tremendous amount of interest this year. While much of the attention has focused on gold and its continued run to new record highs, it is another asset class that has stolen the show in 2010. Long-term Treasuries have climbed steadily higher during 2010, defying the predictions of many “experts” and thriving on a wave of risk aversion.
By Ploutos:In January, I began authoring a monthly series on momentum strategies within the fixed income universe. In past articles, I have highlighted momentum strategies across asset classes that have produced excess returns per risk borne, or alpha, over long-time intervals.
Michael Johnston submits:In recent weeks, the fiscal health of Europe has dominated headlines of the financial presses and moved to the forefront of many investors’ minds. With most expecting the worst in Greece, attention has turned to the handful of other cash-strapped governments across the continent, with investors wondering which will be the next to buckle under the weight of a mounting debt burden.
Erwan Mahe submits:Given today's title, so far removed from the usual macroeconomic, asset allocation or option strategy topics covered here, many of you must be thinking that the tension on financial markets has finally affected my mental stability. However, it may be that the Surrealism of the image's artist, René Magritte, describes perfectly the situation on markets today.